If you’ve purchased a pre-construction property and your closing date is just around the corner, you might be feeling the pressure, especially if your life or financial situations have changed, the market isn’t cooperating, or your original plans for the unit have shifted since you bought the property. First, don’t panic because there are solutions available, but you need to act quickly.

NOTE: I am not a lawyer and this is not legal advice - please consult with a professional. If you have any feeling that you aren’t going to be able to close - contact the agent you purchased the property from and your lawyer right away to discuss your options. Contact me if you need help.

Here are the options available to you when your closing date is approaching:

1) Assignment Sale

An assignment means selling your contract to someone else before your closing. While this strategy has been common in other markets like Toronto, Calgary’s assignment market is virtually non-existent. In fact, prior to 2021, the concept of pre-construction did not exist in Calgary as developers would finish building the development first, then sell units afterwards, so buyers took immediate possession, and assignments didn’t exist.

Making it even more challenging, developers don’t allow you to advertise an assignment publicly on MLS, Realtor.ca, or other platforms, which makes it nearly impossible to find a buyer. Realistically, if you want to assign your unit in Calgary today, you will need to offer a large discount - expected to sell at least 20% below your purchase price plus selling commissions and legal fees. For most sellers, this is not an attractive or viable option.

However you can assign the unit to a friend or family relatively easily if you have someone ready to take it.

NOTE: Selling your unit on assignment does not rid you of your liability. If the next buyer fails to close, you are still liable (developers don’t let you simply off the hook).

2) Give the Unit Back

Many buyers wonder: Can I just give the unit back and walk away?

You cannot simply “walk away” from your purchase. Developers never agree to simply take the unit back and return your deposit.

This is not an option.

3) Mutual Termination

Rare cases exist where mutual terminations have been granted when a deposit was forfeited and/or extra payments given to get out of the contract but they’re the exception, not the rule. When a developer agrees to a mutual release, they give up the legal right to sue you for damages later and most won’t do that, so this is the best outcome for you if you can negotiate it - but likely won’t happen.

4) Defaulting on the Purchase

Defaulting means failing to close on your contract at the date/time specified - this means you are in “breach of contract”. In this case, multiple legal rulings confirm that the developer has the legal right to keep your entire deposit and resell the unit. If they sell it for less than your contract amount including their legal, financing, and selling costs, they can sue you for the resale shortfall or “damages”. There will also be additional legal fees to defend yourself in the lawsuit - all of this can add up to tens (or hundreds) or thousands of dollars.

There is a very high probability that you will be sued by the developer (even in Calgary) as I have seen many developers pursuing buyers who do not close on their purchase in 2025. This is not a risk-free way out, and should be treated as a last resort, so get professional legal advice if you are considering this option.

Click here fore information about what happens if you do not to close on your pre-construction purchase.

5) Get An Extension

I’ve seen this happen before where someone’s bank will pull their mortgage approval a week before closing so if this happens to you, don’t panic. Ask your lawyer to request an extension and submit proof of your financing plans. Builders will usually grant an extension if they can see that you are working towards finding a solution because it will take longer and cost more to sue you.

Use this time to approach B-lenders and private lenders as I have been able to arrange financing for clients in less than 2 weeks before. Contact me if you need help.

5) Close and Immediately Sell

NOTE: To close on a property you will not live in, you are required to have a minimum 20% down-payment to qualify for a mortgage - there is virtually no way around this. Any deposits you have given to the builder during construction do count towards this total (so if you gave the builder a 10% deposit, you will need an additional 10% at closing).

So if you can come up with the funds to close, another option is to take possession of the unit, and then list the property for sale right away - this is the most common option by my buyers who do not want to keep the property.

To make this strategy work, consider getting a variable-rate or open mortgage, which will allow you to sell and minimize your mortgage break penalties. It’s also critical to opt out of any rental guarantee program before closing, so you can deliver vacant possession of the unit to the new buyer. A tenanted unit is much harder to sell and it will sell for less than an empty unit.

There are tax implications here as well, mainly that any profit will be considered as income and added onto your marginal tax rate. If you have a profit, this could mean tens of thousands in extra taxes. If you have a loss, you may not be able to write this off against other investments - get professional accounting advice if you are considering this option.

6) Close and Hold

This is the strategy I recommend for everyone that can financially manage it in order to maximize the return on your investment because you make money in real estate over the long-term.

By holding your property for at least a year, any profit you make from the sale should be treated as a capital gain rather than income, meaning you pay 50% less tax! On top of that, if you rent out the unit for at least a year, you should qualify for the GST rebate of up to $6,300—which is essentially free money back in your pocket.

Holding also gives the market time to stabilize. Immediately after closing, there’s often a flood of new listings as other buyers try to exit, which can temporarily suppress prices. By waiting out this initial supply shock, you give your property a chance to appreciate in value.

Most importantly, real estate is a long-term wealth-building tool. When you hold, you benefit from passive equity growth, mortgage paydown, cash flow, and the potential for strong long-term returns. It’s the strategy that is the most stable and tax-efficient option, and nearly always produces the highest returns.

Final Thoughts

Every situation is different and the wrong decision can be costly. Understanding your options ahead of closing can help you make the best decision - whether that means weathering the short-term turbulence or adjusting course.

If your closing is coming up and you’re unsure what to do, don’t navigate this alone. I help clients across Canada make strategic choices about their pre-construction properties, especially in markets like Calgary, Toronto and Ottawa.

Let’s chat if you need help and make your investment work for you.